Allocations to private equity investments - which had shown signs of tapering since a high of 22 per cent in the same period last year - demonstrated continued long-term strength in Q3 2015, with allocation levels rising to 20 per cent. “Private equity is still well above its median allocation level of the low teens, where it has hovered since 2007 when TIGER 21 began measuring member data,” the organisation said.

TIGER 21 members typically invest in a combination of three private equity areas: venture capital and private equity funds; direct investments in members’ own companies; and direct investments in other private companies. About 80 per cent of the investments members make in private equity are in direct investments, , which stands for The Investment Group for Enhanced Results in the 21st Century, said.

Meanwhile, although allocations to real estate remain higher than the historical average over the past few years, allocations are lower than the previous two quarters, at 28 per cent. Members typically have earned a relatively large percentage of their wealth in the real estate business and continue to own significant portfolios, which may account for a higher concentration in real estate generally among the survey group, the organization said. See a related article here.

Fixed income continued its long-term trend downward, hovering at around 11 per cent since the third quarter of last year. Hedge funds have effectively returned to where they stood at the beginning of the year, showing a 1 per cent drop to a 7 per cent asset allocation level, and remain in line with an allocation range of 7 to 8 per cent, which has been the case since the third quarter of 2013. Cash allocations, down slightly, are at 9 per cent for the quarter - the lowest level seen since the third quarter of 2008. Currencies and commodities showed no change from the previous quarter.

“Strong allocations to private equity, public equity and real estate show that TIGER 21 members are uniquely positioned to take appropriate risk by investing in these assets to preserve wealth in the current low interest rate environment,” said Michael Sonnenfeldt, founder of TIGER 21. “As a result, we would expect to see steady or increased allocations to asset classes our members know that have historically delivered sustainable gains.”

Sonnenfeldt added: “In Q3, private equity and public equity saw upticks in allocation. Although slightly off compared to the previous quarter, real estate has continued to hold its position of strength, particularly when that asset class is viewed over the last 12 quarters.”

The report measures the aggregate asset allocation of exposures based on a portfolio defence where each member must defend their asset allocations.